Modesty does not need to have a sexual basis. My son is 3. If I did not instruct him otherwise, he would whip out his ***** in public for the sheer joy of it. He is very proud of his *****. There is nothing sexual in his desire to get naked. There is nothing sexual in my desire to keep him appropriately clothed with the ***** put away while I pay for groceries. He is instructed to keep his pants and shirt and shoes on in stores. Modesty has to do with cultural norms for body coverage in various settings. If it was the cultural norm to wear a hat, we would do that, too.
Thanks for the laugh!
My 4 year old DS is exactly the same way. He cannot keep his hands off his junk and often whips it out on his way to the bathroom, regardless of where we are. It's about teaching our kids what's appropriate for the situation, and that includes what clothing is appropriate.